Doray Minerals doing just fine at Deflector
THE BOURSE WHISPERER: Doray Minerals (ASX: DRM) checked in to let the market know how things are progressing at the company’s Deflector gold project.
Doray recently commenced production of gold bullion and gold-copper-silver concentrate at the Deflector mine, some 14 months after its takeover of Mutiny Gold.
Open pit mining of the West and Central Lode pits is continuing with the open pit just over two thirds completed by the end of July.
Doray said grade control drilling it has carried out has indicated potential for additional oxide ore at the southern end of the pit, which could be mined and processed before the company makes the transition to underground primary ore.
This additional material is currently being scoped out with further drilling.
On the underground side of the operation – development is progressing on schedule with decline and lateral access advanced 230 metres at the end of July with various underground infrastructure installed.
Ramp-up of the purpose-built processing plant, including gravity and flotation circuits, is continuing with treatment of oxide material from the open pit.
“The processing plant has performed against expectations to date and the project should achieve ‘steady state’ production when the transition to primary ore sourced from underground is completed,” Doray Minerals managing director Allan Kelly said in the company’s announcement to the Australian Securities Exchange.
“Over the next few months, we will complete mining and processing of the oxide and transitional ore which together comprise a small component of the overall production profile, both in terms of mining schedule and output.
“The main game at Deflector is the primary underground ore which we are currently developing production from this ore will commence early in the 2017 calendar year and continue for the best part of six years, as per the current mine plan.”
Having completed a period of data compilation and re-interpretation, including re-mapping of the entire Gullewa Greenstone Belt, the Doray Board has approved a maiden exploration budget of $4 million for both In-Mine as well as Near-Mine exploration at Deflector.
The company indicated this budget will be used to test a series of prospective targets within the Deflector tenement package.
Website: www.dorayminerals.com.au